Blue Owl Technology Income Corp. Lawsuit Investigation
Concerned about investment losses? National securities fraud law firm The White Law Group is investigating claims involving Blue Owl Technology Income Corp.
Massachusetts Regulators Sanction Blue Owl Technology Income Corp.
On August 19, 2024, the Massachusetts Securities Division reportedly issued a Consent Order against Blue Owl Technology Income Corp. (formerly Owl Rock Technology Income Corp.) for alleged violations of state securities laws.
According to the Order, Blue Owl allegedly offered and sold unregistered securities to Massachusetts investors between May 1 and October 2, 2023, without properly registering the offerings with the state. These actions reportedly violated Section 301 of the Massachusetts Uniform Securities Act.
While Blue Owl neither admitted nor denied the findings, the company submitted an Offer of Settlement agreeing to the Consent Order.
What is Blue Owl Technology Income Corp.?
Blue Owl Technology Income Corp. is structured as a non-traded Business Development Company (BDC) that invests in debt and equity of technology-related companies, primarily in the U.S. The company, originally branded as Owl Rock Technology Income Corp., is part of the broader Blue Owl Capital platform and targets private credit investments in the tech sector.
Blue Owl Technology Finance Corp. Plans NYSE Listing
In a significant development, Blue Owl Technology Finance Corp. (OTF) – a BDC focused on upper middle-market U.S. technology companies – announced plans to list its shares on the New York Stock Exchange this week. Subject to market conditions, trading is expected to begin on or about June 12, 2025, under the ticker symbol “OTF.”
As of March 31, 2025, OTF reported a net asset value (NAV) of $17.09 per share, unchanged from year-end 2024. The board also declared a $0.35 per share dividend for Q2 2025, payable on or before July 15, 2025, to shareholders of record as of June 30, 2025.
Recent Performance Concerns with Non-Traded BDCs
Despite the planned listing, recent reports have raised broader concerns about the performance of non-traded BDCs. A February 2024 BlueVault report noted a decline in asset quality across the sector, citing the impact of higher interest rates and tighter financing conditions on portfolio companies.
BDC investments, like those offered by Blue Owl, are often marketed to retail investors seeking income and diversification, but they may carry elevated risks and limited liquidity.
Risks of Investing in Business Development Companies (BDCs)
BDCs, particularly non-traded ones, present a number of risks:
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Loss of principal if underlying loan recipients default.
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Lack of liquidity and difficult resale options.
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Declines in NAV due to market or economic conditions.
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Susceptibility to interest rate and credit market fluctuations.
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Elevated fees and commissions that may impact net returns.
Broker Due Diligence & Suitability Obligations
Broker-dealers are obligated to conduct reasonable due diligence and ensure investment recommendations are suitable for each client’s financial situation and risk tolerance.
Failure to properly disclose risks or selling unsuitable investments may constitute a breach of duty. Investors who were misled or improperly advised may pursue claims through FINRA arbitration.
FINRA Arbitration vs. Class Action Lawsuits
While class action lawsuits may provide a recovery avenue for some, FINRA arbitration is often faster and more tailored to individual investor losses.
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FINRA Arbitration: Individual claims resolved in ~12–18 months.
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Class Action: Collective claims, longer timeline, shared compensation.
Investors seeking individualized attention and faster resolutions often prefer the FINRA arbitration process.
Can You Recover Investment Losses in Blue Owl Technology Income Corp.?
The White Law Group is currently investigating brokerage firms that sold Blue Owl Technology Income Corp. and similar high-risk BDCs to retail investors. These products often carry high commissions, leading to concerns that some financial professionals may have unsuitably recommended them.
About The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, IL and Seattle, WA. The firm represents investors in FINRA arbitration claims involving alternative investments such as BDCs, REITs, and structured products.
If you have suffered losses investing in Blue Owl Technology Income Corp. or related offerings, please call (888) 637-5510 for a free consultation with a securities attorney. To learn more, visit www.whitesecuritieslaw.com.
Frequently Asked Questions
1. Is Blue Owl Technology Income Corp. going public?
The non-traded BDC itself is not listing, but its affiliate, Blue Owl Technology Finance Corp. (OTF), plans to list on the NYSE on or about June 12, 2025, under ticker symbol “OTF.”
2. What are the risks of non-traded BDCs?
These investments are typically illiquid, carry high fees, and are sensitive to interest rate changes and economic downturns. Investors may not be able to sell shares easily and risk losing a significant portion of their principal.
3. How can I recover losses from unsuitable BDC investments?
If your financial advisor failed to disclose risks or recommended a product inconsistent with your investor profile, you may have grounds to file a claim through FINRA arbitration, which offers a quicker, more personalized path to recovery than a class action.
